Powell's trying to temper market enthusiasm for upcoming Fed meetings, says Jefferies' Zervos

AND HERE TO BREAK IT ALL DOWN IS JEFFERIES' CHIEF MARKET STRATEGIST DAVID ZERVOS. DAVID, THANK YOU SO MUCH I WANT TO GET YOUR THOUGHTS ON THE TWO MAJOR HEADLINES FROM THAT LARGE CONVERSATION AS IT APPLIES TO THE U.S. AND MARKETS. JAY POWELL SAYING HE DOES BELIEVE THERE IS MORE RESTRICTION COMING WHILE POLICY IS RESTRICTED IT MAY NOT BE RESTRICTIVE ENOUGH HE SAID HE WOULDN'T RULE OUT

THE IDEA OF CONSECUTIVE RATE HIKES, THAT THIS ISN'T PAUSE ISN'T INDICATIVE THAT WE COULD SEE AN EVERY OTHER MEETING PHENOMENON AND THAT 2% TARGET FOR CORE CPI, INFLATION, NOT ATTAINABLE UNTIL 2025 WHAT DO YOU MAKE OF SOME OF THOSE HEADLINES TODAY? >> EVERYONE, SARA, YOURSELF INCLUDED, INTERPRETED IT ALL CORRECTLY. IT WAS A HAWKISH MESSAGE I THINK HE'S TRYING TO TEMPER MARKET ENTHUSIASM FOR THE SKIP, THAT

IT'S A SKIP AND NOT AN EXTENDED PAUSE IN ALL LIKELIHOOD WHAT THE TWO CONSECUTIVE MEETING STATEMENT WAS ALL ABOUT. I THINK THE CORE PCE, THEY FOCUS ON, HAS BEEN STEADY NOW FOR FIVE MONTHS AT 4.7%, IT'S GIVING THEM TROUBLE. IT'S CONCERNING. HE'S EXPRESSING THAT CONCERN AND TELLING YOU THEY HAVE A REASONABLY LONG JOURNEY AHEAD AND TRYING TO PREPARE THE MARKET FOR THAT THAT'S A MESSAGE I

DON'T THINK THEY LIKE TO HEAR. >> THE MARKETS ARE KIND OF MIXED TODAY. DO YOU THINK THEY ARE ALREADY PRICED INTO THAT HAWKISHNESS, INTERNALIZING WHAT HE'S SAYING >> I DON'T, LESLIE I THINK THE MARKET HAS A MORE OPTIMISTIC VIEW. JAY SAID THAT EARLIER BEFORE WHEN HE WAS ASKED ABOUT THE DISCREPANCY BETWEEN THEIR FORECAST AND THE STREET. HE SAID THE STREET IS MORE OPTIMISTIC ON HOW QUICKLY

INFLATION CAN COME DOWN. EVEN THE FED HAD TO RAISE THEIR CORE PCE FORECAST FROM 3.6 TO 3.9 BECAUSE IT'S NOT MOVING AS QUICKLY. I THINK THAT'S WHAT'S GETTING UNDER THE SKIN OF THE FOMC >> YOU SAY THAT YOU ARE QUITE CONTENT NOT CHASING THE EQUITY MARKET SO WHAT WOULD YOU ADVISE INVESTORS DO WITH THEIR MONEY NOW? >> WE'VE BEEN TALKING ALL YEAR ON THIS SHOW AND

OTHERS ABOUT THE HIGH YIELD CREDIT MARKET AND WHY THAT IS A SAFER ON A RISK ADJUSTED BASIS RETURN THAN GOING ALL IN ON THE EQUITIES WE LIKE BEING RISK ON. WE DO THINK WE'RE IN A RANGE, BUT I THINK THE CREDIT MARKET BONDS YIELDING 8, 9, 10, 11% DEPENDING ON WHAT PART OF THE STRUCTURE YOU'RE IN WHETHER IT'S STRUCK TORE CREDIT, LOANS, BONDS, OFFER A GREAT

OPPORTUNITY FOR INVESTORS TO NOT BE FULLY COMMITTED AS WE GO INTO THE END OF THIS YE